💼Qualify for the home office deduction as a self-employed taxpayer
📊Choose between the simplified method and actual method for calculating deductions
💡Deduct a percentage of your rent, utilities, and other indirect expenses
📝Report home office expenses on Form 8829 and schedule C
🔍Avoid common mistakes like claiming both home office and conventional office space deductions
Who qualifies for the home office deduction?
—Self-employed taxpayers, such as independent contractors, freelancers, or gig workers, qualify for the home office deduction.
What is the difference between the simplified method and actual method?
—The simplified method allows you to deduct $5 per square foot of home office space, up to 300 square feet. The actual method involves calculating the percentage of your home office-related expenses.
What expenses can I deduct with the home office deduction?
—You can deduct expenses such as rent, utilities, mortgage interest, property taxes, and indirect expenses like cleaning supplies and internet service.
How do I report home office expenses?
—You report home office expenses on Form 8829, Expenses for Business Use of Your Home, and Schedule C when filing your federal tax return.
What are common mistakes to avoid with the home office deduction?
—Common mistakes include claiming both home office and conventional office space deductions on the same tax return and both spouses claiming the same office space on separate Schedule C forms.
00:23Self-employed taxpayers qualify for the home office deduction.
02:22Choose between the simplified method and actual method for calculating deductions.
05:13Deduct a percentage of your rent, utilities, and other indirect expenses.
07:43Report home office expenses on Form 8829 and Schedule C.
09:05Avoid common mistakes like claiming both home office and conventional office space deductions.
